Stablecoins have become an integral part of internet payments, with their use rapidly increasing. Experts assert that they are outpacing traditional payment systems.
Growing Popularity of Stablecoins
According to Noam Hurwitz, head of engineering at Alchemy, stablecoins show 'explosive' adoption, becoming the 'default settlement layer for the internet'. They have already surpassed networks like Visa and Mastercard by 7% in on-chain transaction volume.
Utilization of Stablecoins in Financial Operations
Stablecoins make money transfers 'cheap, fast, global, and secure'. These advantages have led to broad acceptance in transactions, including cross-border payments. For instance, Tether (USDT) generated $13 billion in profit last year while holding $113 billion in US Treasury debt.
Increasing Interest in Stablecoins Amid New Regulations
Recently, the U.S. Senate passed a bill on stablecoins establishing federal guardrails for their use. Hurwitz noted that new regulations create clearer conditions for financial market players and encourage innovation.
Stablecoins are becoming not only an important tool for internet payments but also play a crucial role in modern financial operations. However, despite their growth, it is important to consider the challenges and potential limitations that still lie ahead for this technology.
